Date Requested:January 17, 2012
Time Requested:02:19 PM
Agency: State Tax Department
CBD Number: Version: Bill Number: Resolution Number:
2012R1554 Introduced SB210
CBD Subject: UPDATING TERMS IN CORPORATION NET INCOME TAX ACT
FUND(S)
General Revenue Fund
Sources of Revenue
General Fund
Legislation creates:
Neither Program nor Fund

Fiscal Note Summary

Effect this measure will have on costs and revenues of state government.

    The stated purpose of this bill is to update the meaning of “federal taxable income” and certain other terms used in the West Virginia Corporation Net Income Tax Act so that the definitions conform with the Internal Revenue Code’s definitions.
    
    As written, this bill will update West Virginia’s Corporation Net Income Tax Law with the laws of the United States, in effect prior to January 1, 2012, that relate to the determination of income for federal income tax purposes. That is, State law will conform with federal statutes for changes made after December 31, 2010 but before January 1, 2012 (i.e., changes during the year 2011). Federal tax law provisions enacted in 2011 that have an impact on State revenue were included in the Governor’s official revenue estimates for FY2013.
    
    Additional administrative costs to the State Tax Department associated with this bill will be minimal.
    

Fiscal Note Detail
Over-all effect
Effect of Proposal Fiscal Year
2012
Increase/Decrease
(use"-")
2013
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 0 0 0
Personal Services 0 0 0
Current Expenses 0 0 0
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 0 0
2. Estimated Total Revenues 0 0 0
3. Explanation of above estimates (including long-range effect):
    Passage of this bill will update West Virginia’s Corporation Net Income Tax Law with the laws of the United States, in effect prior to January 1, 2012, that relate to the determination of income for federal income tax purposes. That is, State law will conform with federal statutes for changes made after December 31, 2010 but before January 1, 2012 (i.e., changes during the year 2011). Federal tax law provisions enacted in 2011 that have an impact on State revenue were included in the Governor’s official revenue estimates for FY2012. The federal law changes for tax years 2011 and 2012 (as of December 31, 2011) generally relate to items following the calculation of federal taxable income. Since the West Virginia Corporation Net Income Tax begins with federal taxable income, the estimated cost in FY2013 Corporation Net Income Tax revenue attributable to conformity with the federal statutes that were enacted in 2011 is minimal.
    
    Additional administrative costs to the State Tax Department associated with this bill will be minimal.
    


Memorandum
Person submitting Fiscal Note:
Mark Muchow
Email Address:
kerri.r.petry@wv.gov